Exhibit 12-2 USE THE FOLLOWING INFORMATION FOR THE NEXT PROBLEM(S)

question 74

Multiple Choice

Exhibit 12-2
USE THE FOLLOWING INFORMATION FOR THE NEXT PROBLEM(S)
Talmart Corporation bonds have a $1,000 face value and will mature in 4 years. The bonds have a 7% coupon rate. Interest is paid annually and the required rate of return is 6% for these bonds.
-Refer to Exhibit 12-2. What is the price of the Talmart corporate bonds?

• A) $965.63
• B) $966.13
• C) $1,034.65
• D) $1,135.10
• E) $1,051.97

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Definitions:

Liquidity

The ability of a company or individual to quickly convert assets into cash without significant loss in value, essential for meeting short-term obligations.

Accounts Receivable

Funds due to a company from its clients for products or services that have already been provided but remain unpaid.

Net Sales

The total revenue a company generates from its sales activities after subtracting returns, allowances, and discounts.

Ending Accounts Receivable

The amount owed to a company by its customers for goods or services delivered but not yet paid for at the end of an accounting period.